System Benefits Charge in New York:Technology & Market Development Program 2012 – 2016

SBC: Linking the Chain

Scientific Research & Market Analysis

Technology Development

& DemonstrationBusiness & Market

Development

Market Adoption &Expansion

Standard Practice

Energy Innovation

Chain

SBC Technology & Market Development

PSC SBC Order - December 30, 2010

• Seek input from stakeholders• Establish priorities and define scope• Achieve balance of short and long-term

benefits• Develop 5-yr proposal• Funding: TBD

• Conduct constituency outreach meetings (Jan-Mar)• Develop abbreviated draft plan (by Mar)• Technical conference (Mar)• Plan submitted to PSC (May 1)• SAPA comment and reply comment• NYSERDA website

Stakeholder input will continue throughout program implementation

Targeted program advisory groupsAnnual Technical Conferences

Stakeholder Outreach Process & Development of Operating Plan

Mission: 2012 -2016

Test, develop, and introduce newtechnologies, strategies, and practices

that build the Statewide marketinfrastructure to reliably deliver clean

energy to New Yorkers.

SBC Technology & Market Development Program

• Prove out emerging energy efficiency, renewable, and smart grid technologies/strategies and accelerate market readiness in NY

• Move new/under-utilized technologies and services into marketplace to help achieve EEPS & RPS goals

• Stimulate technology and business innovation to provide more clean energy options and lower cost solutions, while growing NY’s clean energy economy

• Spur actions and investments to achieve results distinct from incentive-based programs

SBC Technology & Market Development Program

Proposed Objectives

SBC Technology & Market Development Program

Identification of Opportunity Areas andPotential Portfolio included a Review ofthe following:

• Major challenges in the “clean energy” space• Major challenges to utility systems & ratepayers• Technical and market opportunities• Areas where benefits to NYS could be great• Need for funding/gaps• Experience in SBC3 and other energy programs• Ongoing interaction w/ market participants, stakeholders & DPS

SBC Technology & Market Development Program

• Power Supply & Delivery Initiatives– Smart Grid & EV Infrastructure– Clean Power

• Residential, Commercial & Industrial Initiatives– Advanced Buildings– Industrial Process Innovation & IT Productivity– Whole-Building Low-Income Initiatives– Advanced Energy Codes & Standards

• Clean Energy Infrastructure Initiatives– Market Development– Clean Energy Business Development– Environmental Monitoring, Evaluation & Protection

Proposed Portfolio

Prioritization of Funding for T&MD ProgramFunding priority will be given to initiatives that have significant potential to:

1. Benefit the utility system and ratepayers [ultimately by reducing energy use and demand, increasing safety and reliability, and providing wholesale energy price reduction]

2. Stimulate economic development and create jobs in New York State

3. Reduce the environmental impact of energy production and use

Considering the following:• Ability to make meaningful and measurable progress on program objectives• Critical mass & resources needed execute programs• Likely co-funding leveraging• Availability of other sources of funds/gaps• Potential return on investment• Overall portfolio balance (sector, risk)

Direction from PSC Order: must be “an area of critical concern where knowledge, funding, activity, or the technology is not adequate”

SBC Technology & Market Development Program

SBC Technology & Market Development Program

Prioritization & Preliminary Budget Allocation: Base Budget of ~$70M/yr• Tier I Program Investments: $10-15M/yr each area

– Smart Grid & EV Infrastructure– Clean Power Technology– Advanced Buildings– Market Development

• Tier II Program Investments: $5-9M/yr each area– Clean Energy Business Development– Industrial Process Innovation & IT Productivity

• Tier III Program Investments: $2-4M/yr each area– Whole-Building Low-Income Initiatives– Advanced Energy Codes & Standards– Environmental Monitoring, Evaluation & Protection